HomeMy Public PortalAbout4A Approval of MOU for TCEACity Council
February 24, 2015
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3. Also on March 12, 2014, the City received correspondence dated March 11, 2014,
from Robin Nahin, City Employees Association (CEA) Director, informing the City
that her office will be assisting the TCEA in its effort to establish itself as exclusive
representative for the general employees of City Temple City.
4. On March 13, 2014, the City received a petition that included original signatures
submitted by the general employees of the City of Temple City for the
establishment of TCEA.
5. On April 4, 2014, a representative from the Public Employment Relations Board
(PERB), in accordance with the joint request from the City and TCEA, conducted a
petition check election. The agreed number of employees in the TCEA Unit is 29.
The required majority designation was 15 and the representative from PERB found
that the petition for the employee organization exceeded the majority designation.
6. On July 9, 2014, the City and TCEA had their first meeting to begin negotiating the
MOU. Between July 9, 2014 and February 5, 2015, the City met on numerous
occasions with TCEA to negotiate a MOU.
7. On February 11, 2015, TCEA membership voted to ratify the City’s offer that was
presented to TCEA’s negotiation team on February 5, 2015.
ANALYSIS:
Enacted in 1968, the MMBA governs labor-management relationships within California
local governments, including charter cities. The MMBA establishes certain rights and
duties local public employers, their employees, and employee organizations. In
addition, the MMBA authorizes each local agency to adopt local rules that govern labor
relations. (See Gov. Code § 3507.) These local rules are typically referred to as the
“Employer-Employee Resolution” (EER). As noted above, the City’s EER is set forth in
Resolution No. 95-3430. Upon a verified showing that a majority of employees in a
proposed bargaining unit wish to be represented by an employee organization, the local
employer must recognize the employee organization as the exclusive representative of
those positions. As noted above, PERB confirmed on April 4, 2014 that a majority of
employees wished to be represented by TCEA.
One of the primary rights conferred upon local agency employees by the MMBA is “the
right of public employees to join organizations of their own choice and be represented
by those organizations in their employment relationships with public agencies.” (Gov.
Code § 3500(a).) Similarly, one of the obligations placed on local agencies and
exclusive representatives is to “meet and confer in good faith regarding wages, hours,
and other terms and conditions of employment…” (Gov. Code § 3505.)
City Council
February 24, 2015
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Following the completion of this meet and confer process, the parties reduce their
agreements in a written Memorandum of Understanding (MOU), which is then
presented to the elected legislative body for final approval. The MOU sets forth the
parties’ agreement on wages, hours, and other terms and conditions of employment.
The following is a summary of the changes in wages and benefits for the employees
who are represented by TCEA, and are contained in the MOU before the City Council
for approval:
Salary and Employer Paid Member Contributions
Effective with the pay period ending March 6, 2015:
• 5.0% salary increase; and
• Upon resolution being adopted by City Council and acceptance from
CalPERS, 3.0% increase in the employee contribution to the employee share
of CalPERS retirement (this would bring the employee total contribution to
4.0%).
• For employees who are not already paying their full CalPERS employee
contribution, this will result in a net salary increase of 2.0%.
Effective with the pay period ending July 10, 2015:
• 5.0% salary increase; and
• Upon resolution being adopted by City Council and acceptance from
CalPERS, 3.0% increase in the employee contribution to the employee share
of CalPERS retirement (this would bring the employee total contribution to
7.0%).
• For employees who are not already paying their full CalPERS employee
contribution, this will result in a net salary increase of 2.0%.
Retiree Medical Benefits
A vesting schedule with the statutory CalPERS vesting schedule (Gov. Code §
22893) for all new hires, which will become effective upon a resolution being
adopted by the City Council and acceptance from CalPERS. The statutory vesting
schedule provides that, upon 10 years of service, a retired employee would be
entitled to a 50% City contribution towards the cost of postretirement health
benefits. That contribution increases by 5% each additional year of service
worked, until 20 years of service, when the retired employee would be entitled to
100% City contribution towards the cost of postretirement health benefits.
City Council
February 24, 2015
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Medical Benefits Opt Out
The City will provide taxable cash out of $600/month for any employee who opts
out of medical benefits coverage, upon a showing of other medical coverage.
Increase in Dental Coverage
The City will contribute 75% of the cost of any dependent dental coverage
premiums.
Bilingual Pay
The City will provide a $100 bilingual stipend per month to employees who become
certified translators and provide translation services in the course of conducting
City business.
Stand By and Call Back Pay
The City will provide employees assigned to standby status $125 per week, and
will provide employee with a two-hour minimum when called back to work. The
City will meet with TCEA to establish policies and procedures governing standby
and call back. As an interim agreement, while these procedures are being
negotiated, $125 per week will be provided to a lead worker in either the
Community Development Department/Public Works Division or the Parks and
Recreation Department to be on Stand By each week.
Vacation Accrual
The City will increase vacation accruals as follows:
1-5 years of service: 80 hours
6-10 years of service: 120 hours
11-15 years of service: 136 hours
16+ years of service: 160 hours
The City will also increase the cap on vacation accrual to 320 hours.
CONCLUSION:
The City and TCEA have bargained in good faith and have come to a tentative
agreement for wages, hours, and other terms and conditions of employment for July 1,
2014 through June 30, 2016.
It is recommended the City Council take the actions outlined above to implement the
MOU.
City Council
February 24, 2015
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FISCAL IMPACT :
The fiscal impact of each wage and benefit estimated adjustment for FY 2014-15 are:
• Salary and Employer Paid Member Contributions - $43,000;
• Retiree Medical Benefits – No immediate cost savings;
• Medical Benefits Opt Out - $8,100;
• Increase in Dental Coverage - $2,276
• Bilingual Pay - $1,800
• Stand By and Call Back Pay - $2,000, and
• Vacation Accrual – No immediate fiscal impact, but could increase payout liability
in future when an employee separates from the City.
The fiscal impact of each wage and benefit estimated adjustment for FY 2015-16 are:
• Salary and Employer Paid Member Contributions - $63,950;
• Retiree Medical Benefits – No immediate cost savings;
• Medical Benefits Opt Out - $21,600;
• Increase in Dental Coverage - $6,830
• Bilingual Pay - $5,400
• Stand By and Call Back Pay - $6,500, and
• Vacation Accrual – No immediate fiscal impact, but could increase payout liability
in future when an employee separates from the City..
These adjustments will be included in the FY 2015-16 FY City Budget.
ATTACHMENTS:
A. Resolution No. 15-5067
B. Resolution No. 95-3430